South Africa May Open Doors to Elon Musk’s Starlink by Easing Black Ownership Rules

South Africa may finally open its doors to Elon Musk’s Starlink satellite internet service. This comes as part of ongoing diplomatic efforts to strengthen South Africa–US relations, with reports suggesting that the government may ease its stringent Black Economic Empowerment (BEE) ownership rules to accommodate Starlink.

According to a Bloomberg report, the proposed deal could be discussed during a last-minute meeting between Elon Musk’s team and South African officials accompanying President Cyril Ramaphosa on a U.S. visit. The aim? Repair diplomatic ties and unlock new tech and infrastructure opportunities for South Africa.

Why Starlink Hasn’t Launched in South Africa

Starlink, the satellite internet project by Elon Musk’s SpaceX, has already rolled out in over 70 countries, delivering high-speed internet to remote and underserved areas. But it has been noticeably absent in South Africa due to regulatory hurdles.

The major roadblock has been the country’s BEE policy, which requires that foreign-owned telecoms companies have at least 30% Black ownership to operate. Elon Musk criticized the policy earlier this year, calling it “anti-competitive” and suggesting it was discriminatory, a claim South African authorities strongly denied.

A Policy Shift to Welcome Starlink?

To address these concerns, South Africa’s new Minister of Communications, Solly Malatsi, is reportedly drafting a directive that would provide an alternative compliance route for satellite internet operators. Rather than mandating equity sales, the government may allow Starlink to gain licensing by investing in underserved communities.

This change is currently undergoing public consultation with the Independent Communications Authority of South Africa (ICASA). If approved, it could pave the way for Starlink’s entry into the South African telecoms market, benefiting millions who lack reliable internet access.

What This Means for South Africa

1. Closing the Digital Divide: Starlink’s low-orbit satellite network could bring affordable, high-speed internet to rural and hard-to-reach areas.

2. Boosting Economic Growth: Improved internet access can empower startups, digital businesses, and education initiatives.

3. Strengthening Diplomatic Ties: This move may also ease tensions with the U.S. and position South Africa as a friendlier investment destination.

What’s Next for Starlink in South Africa?

If the policy directive is finalized and the licensing granted, Starlink could be operational in South Africa by late 2025 or early 2026. This would be a game-changer for the country’s connectivity and digital economy.

While nothing is official yet, the signals from both Pretoria and Washington are clear: South Africa wants Starlink—and may be willing to adjust its policies to get it.

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